The price of Bitcoin, and the sector in general, is taking a major plunge at the time of writing. In these exceptional times, it is very important to remain objective and stay focused on the price action of the sector and the assets you are invested in. Therefore, a zoom out is always warranted to see how the recent move fits in the big picture. Today we will cover the price of Bitcoin, the original Cryptocurrency that started it all and the sector leader.
Bitcoin Price Daily Chart
After making a double top in 2021, Bitcoin came back to back test the previous support area at $30k only to get rejected from there.
Between the month of April and May 2022, the price was trying to make a reversal. The setup ended up becoming a bear flag that broke to the downside.
After this Saturday’s capitulation, the target price of that bear flag was hit and some more. We expect a bounce at the pink trendline. But as the price bounces from here, there will be some crucial resistance levels to watch. It will be important to assess how the price is reacting at those levels to understand if the price can continue to move upwards OR if the relief rally will be rejected from those levels. That’s what InvestingHaven Blockchain team will be tracking in the next few days.
Bitcoin’s Monthly Chart Is Still In A Long Term Uptrend
When things are moving fast, it is usually a good exercise to zoom out. That is exactly the point of the monthly chart below. We have an incredible uptrend, spanning through 7 years. Even that Crypto Winter from 2018 looks like a nice buyable pullback! That is the power of zooming out and using a logarithmic chart from time to time to tune out the noise.
The monthly chart also shows a lot of support in this areas:
- Horizontal support levels
- Previous major tops
- Important psychological price levels that are likely to hold
Keep in mind that what we are probably seeing this weekend, is the impact of heavy and likely unreasonable leverage on a relatively small and budding sector. Cryptocurrencies are here to stay, same for NFTs but only the strongest will survive. Time will tell.
In the latest crypto alert shared with premium members exactly at the time of publishing of this article we share a few crucial Bitcoin charts, even on the longest term timeframe. Both confirm the importance of current levels but also help us interpret price action in the coming days and weeks. We also indicate if a buy alert is justified or not.
Written by hdcharting.
